Stanbic full year profit jumps 39% to Kh.7.2 billion

The growth in profitability is attributable to greater revenues and reduced costs in the year with the lender booking gains from increased lending while shedding provisions for bad loans on improving asset quality.

Stanbic’s total income in the period for instance improved by 7.8 per cent in the year to hit Ksh.25 billion from Ksh.23.2 billion.

This as net interest income grew ahead of non-interest funded income (NFI) at 12.5 per cent to Ksh.14.4 billion from Ksh.12.8 billion.

NFI was meanwhile up marginally at Ksh.10.6 billion from Ksh.10.4 billion in December 2020.

Meanwhile, the Group has shed its credit impairment costs by nearly half at 49 per cent to Ksh.2.5 billion from Ksh.4.9 billion previously.

The cut in the loan-loss provisions costs came as Stanbic Bank Kenya gross non-performing loans fell to Ksh.22.5 billion from Ksh.25 billion a year prior.

Loan-loss provisions specific to Stanbic Bank now stand at Ksh.2.1 billion from Ksh.4.3 billion.

Stanbic Holdings total assets at the end of the year remained relatively unchanged at Ksh.328.9 billion with loans and advances to customers growing by 16.8 per cent to Ksh.229.3 billion.

The Group’s deposits from banks and customers have nevertheless eased slightly to Ksh.254.6 billion from Ksh.260 billion.

Subsequent to the profit rise, the board of Stanbic Holdings has recommended a final dividend of Ksh.7.30 taking the cumulative dividend for the year to Ksh.9 per share having paid an interim dividend of Ksh.1.70.

Stanbic Holdings earnings per share (EPS) now stand at Ksh.18.23 from Ksh.13.13.